Economists expect Trump's rise to power to cause inflation to rise by 0.7pc a year

According to a report by the Peterson Institute for International Economics, if the tariff policies mentioned during Trump's campaign are implemented, they would exacerbate the distortions and burdens caused by the tariffs imposed during the first term of the Trump administration (and maintained by the Biden administration) and would cause significant collateral damage to the U.S. economy. Mark Zandi, Moody's chief economist, said, ‘If Trump raises tariffs as proposed, the economy is likely to fall into recession very quickly.’ He added that this also includes retaliatory measures likely to be taken by other countries.Zandi predicted that inflation would rise by 0.7 percentage points in the year after the tariffs are implemented.

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